Nornickel Reports Revenue Decline for 2024 but Maintains Strong Production Levels

Nornickel, a leading global mining company, has released its financial results for 2024, showing a 13% decline in revenue to $12.5 billion and a 37% drop in net income to $1.8 billion. Free cash flow also decreased by 31% to $1.9 billion, while net debt rose 6% to $8.6 billion.

The company’s reduced financial performance was largely anticipated due to weak global demand for base and precious metals, low prices, and export duties from Russia. In response, Nornickel cut its investment program by 20% to $2.4 billion, optimizing expenditures and eliminating non-essential activities. Capital expenditures peaked in 2024 due to the expansion of its Sulphur Programme at the Nadezhda smelter but are expected to decrease in line with market conditions.

Despite financial setbacks, Nornickel reported strong operational results. Nickel production reached 205,000 tonnes, exceeding forecasts of 184,000-194,000 tonnes by 5.7-11.4%. Copper output, including the Trans-Baikal Division, totaled 433,000 tonnes, surpassing expectations by 2.6-8%. Palladium production hit 2.762 million troy ounces, exceeding forecasts by 12.7-20.2%, while platinum output reached 667,000 troy ounces, 10.2-17.6% above projections.

Looking ahead to 2025, Nornickel plans to maintain conservative production targets as the global market gradually recovers. The company projects nickel output between 204,000-211,000 tonnes, copper output between 419,000-443,000 tonnes (including the Trans-Baikal Division), palladium production between 2.704-2.756 million troy ounces, and platinum output between 662,000-675,000 troy ounces.

Given current financial conditions, Nornickel may temporarily suspend dividend payments to conserve cash for strategic priorities and position itself for future growth as demand and prices recover.